TOWARDS TRANSFORMATIVE SERVICE ECOSYSTEMS AND SOCIAL IMPACT MARKETING

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1 TOWARDS TRANSFORMATIVE SERVICE ECOSYSTEMS AND SOCIAL IMPACT MARKETING CONFERENCE PAPER NO. 68 EUROPEAN SOCIAL MARKETING CONFERENCE 2018 Jonna Heliskoski M.Sc. (Econ), MBA, PhD Candidate Hanken School of Economics, Helsinki, Finland Pia Polsa PhD (Econ), Associate Professor Hanken School of Economics, Helsinki, Finland

2 In recent years, governments, NGOs and companies have shown great attention towards improving the well-being of individuals, families, organisations, systems, and societies worldwide. Also, in 2015 UN Member States agreed on the Sustainable Development Goals, the SDGs. What do we know about achieving shared impact goals through co-operation? Pictures:

3 Presentation Outline 1. Research Context 2. Purpose and Design 3. Research Topics and Domains A. Service Systems B. Social Impact C. Purposeful co-operation 4. Discussion 5. New Research Agenda What do we know about achieving shared impact goals through co-operation? Pictures:

4 1. Research Context Societal focus: Increasing interest towards social innovations, social entrepreneursihip 1, social marketing and social impact investing 2 Research focus: Improving well-being through transformative services is one of the most important research priorities across service research domains 3. Shared Perspectives Social impact Goal setting? Systems Purposeful systems? 1 Philips et al., Calderini et al., Ostrom et al., 2015, p. 148

5 2. Purpose and Design This is a conceptual paper exploring how current multidisciplinary research on service systems and social impact approach outcome-oriented transformative service ecosystems. While service research extends over 24 academic disciplines and is fueled with shared focus on service systems and value co-creation 1, this paper focuses on the following topics and research domains: Topic Service system Social impact and wicked problems Purposeful co-operation Research Domain Service marketing (Service-dominant logic, Customer-dominant logic, Service science) Social marketing (wicked problems) Service science (service platforms) 1 Ostrom et al., 2015, p. 128

6 3A. Service Systems in Service Marketing Managerial Scope System Relationship Encounter Solutions selling Relationship Marketing, Customer relationship management Traditional marketing Consumer culture theory Business networks Servicedominant logic Service Logic 1980-/ Grönroos Service Design Customer Dominant Logic Service Provider Interaction Customer Managerial Focus Figure 1: Different views of marketing (Strandvik and Heinonen, 2015, p. 116)

7 3A. Service Systems in Service Marketing Customer-dominant (C-D) logic The Nordic school of service marketing value is experientially formed in the customer s (unique) ecosystem 1 System level becomes relevant (only) when a number of customers adopt a similar view on an issue 2 Service-dominant (S-D) logic and Service science Service ecosystem is the unit of analysis 3 Service system focuses on interaction and is a value-co-creation configuration of people, technology, value propositions connecting internal and external service systems, and shared information 4 In service science, value is an emerging property and service ecosystem has no master plan However, S-D Logic is moving towards coherent market theory focusing on institutional arrangements in order to facilitate a shared purpose among system actors. Unpacking how this purposeful, cooperative activity leads to value cocreation will be a major underlying theme (of the S-D logic) for the next 10 years 3 1 Voima et al., 2011, p Heinonen and Stradvik, Vargo and Lusch, 2017, p Maglio and Spohrer, 2008, p. 18

8 3B. Social Impact in Social Marketing Social marketing scholars indicate a need to extend focus from behavioral changes to creating wider social good and social change It has been suggested that the main purpose of social marketing is to transform society for the greater good 1 Social challenges are at large wicked or complex in nature 2. Addressing them calls for adopting a system level perspective Creating systemic change requires understanding the emergent interplays between systems and individuals 3 1 Saunders et al., 2015, p Kennedy et al., Domegan et al., 2017, p Brychov and Domegan, 2017

9 3B. Social Impact in Social Marketing Wider social good System level perspective Systemic change Consequently, Integration between system science and social marketing is expected to deepen 4 The shift in focus is advocated in new social marketing research domains such as Social Ecological Theory (SET) 2, systems social marketing (SST) 5, and strategic social marketing 6. They all emphasize 1. Adopting a strategic perspective to systems in order to create system level change 2. Defining systems to support strategic interventions 3. Utilising system dynamics modelling to manage and verify impact 1 Saunders et al., 2015, p Kennedy et al., Domegan et al., 2017, p Brychov and Domegan, Domegan and Layton, French and Gordon, 2015

10 3C. Purposeful Co-operation Research on Institutional arrangements: How individual actors are affected by and contribute to institutional arrangements is service systems 1 (Structuration theory) Collective agency: How shared intentions contribute to the development of service ecosystems 2 Shared leadership: How shared leadership could facilitate value co-creation 3 The goal orientation is particularly highlighted in research on Service platforms: How service platforms steer or facilitate the social change by gathering and integrating resources 4 Service system dynamics: How service systems are not stable but face systematic changes and disruptions 5 1 Trovoll, Taillard et al., Johansson et al., Letaifa et al., 2016, p Banoun et al., 2016, p.2990

11 4. Discussion Common features Focus on generating systemic social impact Multilevel approach to social change Objective of facilitating co-operation and value co-creation among system agents Shared vagueness How system level impact goals are set? How impact goals affect the nature of an ecosystem? How impact-oriented ecosystem or ecosystems are generated? Namely: How can we achieve shared impact goals through purposeful co-operation?

12 5. New Research Agenda Research questions How ecosystem level impact goals are set? How impact goals affect the nature of an ecosystem? How impact-oriented ecosystem or ecosystems are generated? Research would benefit from Multidisciplinary research Multilevel perspective to social change Extending scope from systems to platforms and markets How can we achieve shared impact goals through purposeful co-operation? To emphasise the importance of impact orientation, the suggested new research agenda could be called Social Impact Marketing (SIM) Pictures:

13 5. Social Impact Marketing (SIM) Platform/ Market/ Society Managerial Scope System Relationship Encounter Solutions selling Relationship Marketing, Customer relationship management Traditional marketing Consumer culture theory Social Impact Marketing Business networks Servicedominant logic Service Logic 1980-/ Grönroos Service Design Customer Dominant Logic How can we achieve shared impact goals through purposeful co-operation? Service Provider Interaction Customer Managerial Focus Figure 2: Social Impact Marketing (adapted from Strandvik and Heinonen, 2015, p. 116) Pictures:

14 Towards Transformative Service Ecosystems & Social Impact Marketing (SIM) Thank you for your attention. Questions? Jonna Heliskoski M.Sc. (Econ), MBA, PhD Candidate Hanken School of Economics, Helsinki, Finland Pia Polsa PhD (Econ), Associate Professor Hanken School of Economics, Helsinki, Finland

15 References Calderini, M., Chiodo, V. and Michelucci, F. V. (2017), The Social Impact Race: Towards an Interpretative Framework. European Business Review, Vol. 30 No. 1, pp Johansson, C., Bedggood, R., Farquharson, K. and Perenyi, A. (2018), Shared leadership as a vehicle to healthy service eco-systems: practical or fanciful?, Journal of Social Marketing, Vol. 8 No. 2, pp Letaifa, S. B., Edvardsson, B., Tronvoll, B. (2016), The role of social platforms in transforming service ecosystems, Journal of Business Research, Vol. 69, pp Maglio, P. P. and Spohrer, J. (2008), Fundamentals of service science, Journal of Academic Marketing Science, Vol. 36, pp Ostrom, A. L., Parasuraman, A., Boven, D. E., Patricio, L. and Voss, C. A. (2015), Service Research Priorities in a Rapidly Changing Context, Journal of Service Research, Vol. 18 No. 2, pp Philips, W., Leem, H., Ghobadian A., O Regan, N. and James, P. (2015), Social Innovation and Social Entrepreneurship. A Systematic Review, Group & Organization Management, Vol. 40 No. 3, pp Strandvik, T. and Heinonen, K. (2015), Essentials of customer dominant logic, in Gummerus, J. and von Koskull, C. (Eds.), The Nordic School: Service marketing and Management for the Future. CERS, Hanken School of Economics, Helsinki, pp Taillard, M.,. Peters, L. D, Pels, J. and Mele, C. (2016), The role of shared intentions in the emergence of service ecosystems, Journal of Business Research, Vol. 69, pp Tronvoll, B. (2017), The Actor: The Key Determinator in Service Ecosystems, Systems, Vol 5 No. 38. Voima, P., Heinonen K., Strandvik, T., Mickelsson, K.-J. and Arantola-Hattab J. (2011), A customer ecosystem perspective on service, QUIS12: Advances in Service Quality, Innovation and Excellence, pp